news 
Klarna Plans to Adopt Cryptocurrency Services into its Platform
Swedish fintech company Klarna has finally decided to enter the cryptocurrency market, as revealed by its CEO and co-founder Sebastian Siemiatkowski. In a recent tweet, Siemiatkowski announced that the “Ok. I give up. Klarna and me will embrace crypto!” The CEO jokingly admitted that his company was among the last major fintech players to venture into this space.
As one of the world’s largest buy-now-pay-later (BNPL) providers, serving over 85 million customers and partnering with more than 500,000 merchants worldwide, Klarna’s move into cryptocurrency has significant implications. The company processed $100 billion in transaction volume last year, a staggering figure that demonstrates its dominance in the BNPL sector.
According to Siemiatkowski, he is seeking input from the crypto community on potential implementation strategies. This bold move comes after a previous expression of skepticism about Bitcoin and other digital assets by the CEO. In a 2021 interview with CNBC, Siemiatkowski expressed concerns that many people might invest in cryptocurrencies late in the cycle, potentially leading to financial losses.
It’s worth noting that Klarna’s major competitor, Affirm, has already experimented with cryptocurrency services but discontinued its program in early 2023. Nevertheless, Klarna’s entry into the space is a significant development that may encourage other fintech companies to follow suit.
In his tweet, Siemiatkowski also mentioned that he will share updates on the company’s crypto plans and strategies. The CEO received suggestions from several entrepreneurs, including Circle’s Chief Product and Technology Officer Nikhil Chandhok, who offered innovative ideas for utilizing cryptocurrency in transactions. These include settling merchant transactions using stablecoins for faster processing and better cash flow management, as well as integrating crypto wallets to enable direct payments through cryptocurrencies.
Raghav Gulati, CEO of CoinList, also provided his insights, advising Klarna to allow payments with stablecoins on low-cost networks like Solana and holding a small Bitcoin position in the company’s treasury for inflation hedging purposes.
Source: cryptobriefing.com
